{"id":86257,"date":"2026-10-06T18:12:05","date_gmt":"2026-10-06T12:42:05","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=86257"},"modified":"2026-10-06T18:42:51","modified_gmt":"2026-10-06T13:12:51","slug":"digitalisation","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/06-10-2026\/digitalisation","title":{"rendered":"Digitalisation: Next Phase of DISCOM Reforms"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Energy Infrastructure<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently, India crossed <strong>300 GW of non-fossil-fuel installed capacity<\/strong>, exceeding <strong>54% of total generation capacity<\/strong>, but integrating rapidly growing variable renewable energy remains a<strong> major distribution challenge.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About DISCOMs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They are the last-mile entities responsible for supplying electricity to consumers.&nbsp;<\/li>\n\n\n\n<li>They procure power from generators, transmit it through distribution networks, manage feeders and transformers, meter consumers, collect revenues and maintain supply reliability.<\/li>\n\n\n\n<li>Electricity being a <strong>concurrent subject,<\/strong> distribution of electricity to consumers, including the operations of the <strong>Distribution Companies (DISCOMs) and digitalisation<\/strong> thereof, falls within the purview of the respective distribution utility, which <strong>functions under the guidance of the respective State Government<\/strong> and State Electricity Regulatory Commission.&nbsp;&nbsp;<\/li>\n\n\n\n<li>They are the <strong>weakest financial and operational link<\/strong> in India\u2019s electricity value chain because of:\n<ul class=\"wp-block-list\">\n<li>Politically constrained, often non-cost-reflective tariffs.<\/li>\n\n\n\n<li>High <strong>Aggregate Technical and Commercial (AT&amp;C) losses<\/strong>.<\/li>\n\n\n\n<li>Delayed subsidy payments and poor revenue collection.<\/li>\n\n\n\n<li>Aging distribution infrastructure and inadequate network visibility.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Integrating Renewable Energy Capacity into the Electricity System<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s renewable-energy expansion has been remarkable:\n<ul class=\"wp-block-list\">\n<li>Solar capacity increased from <strong>2.8 GW in 2014 to around 165 GW<\/strong>.<\/li>\n\n\n\n<li>India added a record <strong>55.29 GW of non-fossil capacity in the last financial year<\/strong>.<\/li>\n\n\n\n<li>Over <strong>\u20b93 lakh crore<\/strong> has been committed towards distribution reforms.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The challenge is now shifting from <strong>capacity creation to capacity utilisation and integration<\/strong>.<\/li>\n\n\n\n<li>Solar and wind are <strong>variable and location-dependent <\/strong>unlike conventional generation.<\/li>\n\n\n\n<li>Their increasing share requires DISCOMs to forecast demand, manage congestion, balance supply and demand, and coordinate storage and power procurement.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges &amp; Issues in Distribution<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High AT&amp;C Losses:<\/strong> Energy is lost technically or through theft, faulty metering and non-payment.<\/li>\n\n\n\n<li><strong>Poor Network Visibility:<\/strong> Many utilities lack a comprehensive, real-time picture of their assets and power flows.<\/li>\n\n\n\n<li><strong>Renewable Intermittency:<\/strong> Variable generation complicates forecasting and grid balancing.<\/li>\n\n\n\n<li><strong>Financial Stress:<\/strong> Revenue gaps constrain investment in modernisation.<\/li>\n\n\n\n<li><strong>Uneven Reform Performance:<\/strong> National averages conceal substantial state-level differences.<\/li>\n\n\n\n<li><strong>Limited Consumer Centric Metrics:<\/strong> Reliability, restoration time and billing accuracy are inadequately tracked.<\/li>\n\n\n\n<li><strong>Skill Deficit:<\/strong> Digital systems require personnel capable of analysing data and acting on it.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Efforts &amp; Initiatives Related to Electricity Distribution<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Revamped Distribution Sector Scheme (RDSS): <\/strong>It seeks to improve the operational and financial sustainability of DISCOMs through infrastructure modernisation, loss reduction and improved metering. It supports measures such as:\n<ul class=\"wp-block-list\">\n<li>Upgradation of substations and distribution transformers.<\/li>\n\n\n\n<li>Feeder segregation.<\/li>\n\n\n\n<li>Smart metering and modern distribution infrastructure.<\/li>\n\n\n\n<li>Greater accountability through measurable performance outcomes.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Policy Support for Renewable Manufacturing: Production Linked Incentive (PLI) schemes<\/strong> have strengthened domestic solar manufacturing, complementing renewable-capacity expansion.<\/li>\n\n\n\n<li><strong>Bidding and Regulatory Reforms: <\/strong>Competitive bidding, improved tariff processes and greater financial discipline have helped create a more predictable investment environment.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Digitalisation: Missing Layer in DISCOM<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digitalisation can transform discoms from reactive utilities into predictive organisations. It can proceed through <strong>three interconnected layers:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Digital Mapping: <\/strong>Every transformer, feeder, substation and pole should be <strong>geolocated and digitally mapped<\/strong>. It enables utilities to know what assets they own and where they are located.<\/li>\n\n\n\n<li><strong>Real-Time Network Visibility: <\/strong>Live data can show <strong>how electricity is flowing, where losses occur and where congestion or faults are emerging<\/strong>. Smart meters, sensors and automated systems can provide this operational intelligence.<\/li>\n\n\n\n<li><strong>Forecasting and Predictive Management: <\/strong>Once assets and power flows are visible, utilities can forecast <strong>area-wise and hourly demand<\/strong>, optimize power procurement, schedule maintenance and anticipate equipment failures.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Case Study: Evidence From Rajasthan<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rajasthan curtailed approximately <strong>11.5 GW of wind and solar power between January and April<\/strong>, highlighting the gap between renewable generation and grid absorption capacity.<\/li>\n\n\n\n<li>The experience of <strong>Jaipur Vidyut Vitran Nigam Limited (JVVNL)<\/strong> illustrates the potential of digitalisation.<\/li>\n\n\n\n<li>Its digital-twin initiative has reportedly digitalised nearly <strong>four million assets<\/strong> and processes around <strong>120 million records per day<\/strong>.<\/li>\n\n\n\n<li>The initiative is projected to generate savings of nearly <strong>\u20b9200 crore annually<\/strong>.<\/li>\n\n\n\n<li>Such examples demonstrate that digital infrastructure can convert data into operational and financial gains.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Beyond Technology: Human and Consumer-Centric Reform<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digitalisation alone is insufficient. Discom personnel need training in <strong>data analytics, forecasting, asset management and digital decision-making<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Cybersecurity and data governance must also accompany smart-grid expansion.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Equally important is a shift towards <strong>consumer-centric performance indicators<\/strong>.<\/li>\n\n\n\n<li>Utilities should be evaluated on hours of uninterrupted electricity supply; fault restoration time; accuracy of billing; feeder-level reliability; and consumer grievance resolution along with on installed capacity and financial performance.<\/li>\n\n\n\n<li>Such metrics would make electricity distribution a measurable public-service outcome.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has already committed more than <strong>\u20b93 lakh crore to distribution reforms<\/strong>.<\/li>\n\n\n\n<li>The next phase should make digitalisation integral to this expenditure by requiring utilities to:\n<ul class=\"wp-block-list\">\n<li>Make <strong>network mapping and feeder-level data<\/strong> a condition for future distribution funding.<\/li>\n\n\n\n<li>Fund utilities against <strong>verified reductions in losses and improvements in reliability<\/strong>.<\/li>\n\n\n\n<li>Scale smart meters, SCADA, GIS, digital twins and AI-enabled forecasting.<\/li>\n\n\n\n<li>Integrate <strong>battery storage, demand response and flexible generation<\/strong> with renewable expansion.<\/li>\n\n\n\n<li>Develop specialised <strong>digital and data-analytics skills<\/strong> within DISCOMs.<\/li>\n\n\n\n<li>Introduce consumer-centric indicators such as <strong>hours of supply, outage duration and billing accuracy<\/strong>.<\/li>\n\n\n\n<li>Strengthen cost-reflective tariffs while protecting vulnerable consumers through targeted subsidies.<\/li>\n\n\n\n<li>Encourage <strong>government\u2013DISCOM\u2013private-sector partnerships<\/strong> for technology deployment and capacity building.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>Discuss the significance of digitalisation in improving the financial sustainability of DISCOMs and integrating renewable energy into India\u2019s power system.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.hindustantimes.com\/opinion\/digitalisation-is-the-next-phase-of-discom-reforms-101791138847358.html\" target=\"_blank\" rel=\"noopener\">Source: HT<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2026\/10\/Daily-Editorial-Analysis-06-10-2026.pdf\"><strong>Download PDF<\/strong><\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 06 October, 2026<\/p>\n<p>Recently, India crossed 300 GW of non-fossil-fuel installed capacity, exceeding 54% of total generation capacity, but integrating rapidly growing variable renewable energy remains a major distribution challenge.<\/p>\n","protected":false},"author":15,"featured_media":86258,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-86257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/digitalisation.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=86257"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86257\/revisions"}],"predecessor-version":[{"id":86288,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86257\/revisions\/86288"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/86258"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=86257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=86257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=86257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}